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Buy Stocks With Upgraded Broker Ratings Amid Coronavirus Woes

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Amid economic crisis owing to the coronavirus pandemic, markets are extremely volatile these days. It is not an easy task for individual investors to identify stocks with strong prospects. Hence, advice from experts is crucial.

You can simply follow broker rating upgrades. Brokers have a deeper insight into stocks, sectors and the overall economy. Also, they directly communicate with top management, and thoroughly study publicly available documents as well as attend conference calls.

Furthermore, brokers scrutinize the fundamentals of companies and place them against the current economic backdrop to find out how the stocks will fare as an investment option. Hence, by following broker rating upgrades, you can easily find attractive stocks.

Nonetheless, depending only on broker upgrades is not advisable. You must also take into consideration a few other factors before adding a stock to your investment portfolio. In this way, you can ensure solid returns.

Choosing the Winning Strategy

We have a screening strategy that will help you in your search for potential winners:

Broker Rating Upgrades (four weeks) of 1% or more: The screen selects stocks that have witnessed broker rating upgrades of 1% or more over the last four weeks.

Current Price greater than $5: The stocks must be trading above $5.

Average 20-day Volume greater than 100,000: A large trading volume guarantees that the stock is easily tradable.

Zacks Rank equal to #1 or 2: No matter whether market conditions are good or bad, stocks with a Zacks Rank #1 (Strong Buy) or 2 (Buy) have a proven record of success. You can see the complete list of today’s Zacks #1 Rank stocks here.

VGM Score of A or B: Our research shows that stocks with a VGM Score of A or B when combined with a Zacks Rank #1 or 2 offer the best upside potential.

Here are five of the 13 stocks that qualified the screening:

Based in Duluth, GA, Primerica, Inc. (PRI - Free Report) provides financial products to middle-income households. Its earnings are expected to increase 12.5% in 2020. The stock, sporting a Zacks Rank #1, has witnessed 50% upward revision in broker ratings over the past four weeks.

Deckers Outdoor Corporation (DECK - Free Report) designs, markets, and distributes footwear, apparel, as well as accessories for casual lifestyle use and high performance activities. This Goleta, CA-based company’s fiscal 2021 earnings are expected to increase 7.8%. The stock, carrying a Zacks Rank #2, has witnessed 10% upward revision in broker ratings over the past four weeks.

Based in Lebanon, TN, Cracker Barrel Old Country Store, Inc. (CBRL - Free Report) is engaged in the ownership and operation of full-service restaurants with a restaurant and a retail store in the same unit. Its earnings are expected to grow 6.4% in fiscal 2021. The stock, sporting a Zacks Rank #1, has witnessed 14.3% upward revision in broker ratings over the past four weeks.

Headquartered in Minnetonka, MN, UnitedHealth Group Incorporated (UNH - Free Report) is a diversified health care company. Its 2020 earnings are expected to grow 9%. The stock, carrying a Zacks Rank #2, has witnessed 5.6% upward revision in broker ratings over the past four weeks.

Omnicom Group Inc. (OMC - Free Report) provides advertising, marketing and corporate communications services. This New York-based company’s 2020 earnings are expected to increase 4.1%. The stock, carrying a Zacks Rank #2, has witnessed 12.5% upward revision in broker ratings over the past four weeks.

Get the rest of the stocks on the list and start putting this and other ideas to the test. It can all be done with the Research Wizard stock picking and backtesting software.

The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.

Click here to sign up for a free trial to the Research Wizard today.

Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.

Disclosure: Performance information for Zacks’ portfolios and strategies are available at:
https://www.zacks.com/performance

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